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Vestas Wind Systems AS (VWDRY)
OTHER OTC:VWDRY
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Vestas Wind Systems AS
(OTC:VWDRY)
68Neutral
Vestas Wind Systems AS (VWDRY) vs. S&P 500 (SPY)
Market Cap
$14.66B
Dividend YieldN/A
Average Volume (3M)290.24K
Price to Earnings (P/E)26.9
Beta (1Y)0.55
Revenue Growth12.40%
EPS Growth554.81%
CountryUS
Employees35,100
SectorIndustrials
Sector Strength66
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.18
Shares Outstanding3,029,632,000
10 Day Avg. Volume292,709
30 Day Avg. Volume290,236
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)N/A
Price to Sales (P/S)1.74
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Vestas Wind Systems AS Business Overview & Revenue Model
Company DescriptionVestas Wind Systems AS (VWDRY) is a Danish company that specializes in the design, manufacture, installation, and maintenance of wind turbines. As a leader in the renewable energy sector, Vestas provides solutions that harness wind energy to produce electricity, offering both onshore and offshore wind turbines. The company's mission is to deliver sustainable energy solutions worldwide, contributing to the global transition towards renewable energy sources.
How the Company Makes MoneyVestas Wind Systems AS makes money primarily by selling wind turbines and related services. The company's revenue streams include the sale of onshore and offshore wind turbines, which are designed and manufactured to meet the energy needs of various global markets. Additionally, Vestas offers a range of services including installation, maintenance, and repair, which provide ongoing revenue through service contracts and support agreements. The company also engages in partnerships and joint ventures with other industry players to enhance its market reach and technological capabilities, further contributing to its revenue generation. Key factors influencing Vestas' earnings include government policies on renewable energy, technological advancements, and the growing demand for clean energy solutions.
Vestas Wind Systems AS Financial Statement Overview
Summary
Vestas Wind Systems AS demonstrates strong financial performance and improvement across most metrics. Revenue growth and improved profitability margins are evident in the income statement. The balance sheet shows a robust position with no debt, though a high reliance on liabilities is noted. The cash flow statement reveals excellent cash generation and management, indicating a solid growth trajectory with improving operational efficiencies.Income Statement
Vestas Wind Systems AS shows a positive trajectory in its income statement, with a significant increase in total revenue from $15.38 billion in 2023 to $17.29 billion in 2024, reflecting a revenue growth rate of 12.92%. The gross profit margin improved to 11.89% in 2024 from 8.34% in 2023, indicating better cost management. The company's net profit margin increased to 2.88% in 2024 from 0.50% in 2023, demonstrating enhanced profitability. However, the EBIT and EBITDA margins, while improved, remain moderate at 4.59% and 10.20%, respectively, suggesting room for further operational efficiency gains.75
Positive
Balance Sheet
The balance sheet of Vestas Wind Systems AS indicates a stable financial position with zero total debt as of 2024, which is an improvement from $3.39 billion in 2023, enhancing its financial flexibility. The equity ratio stands at 14.32% in 2024, slightly increasing from 13.45% in 2023, showing a modest improvement in financial leverage. The return on equity improved to 14.15% in 2024 from 2.54% in 2023, reflecting a better utilization of equity to generate profits. Despite these strengths, the relatively low equity ratio indicates a high reliance on liabilities.68
Positive
Cash Flow
Vestas Wind Systems AS exhibits strong cash flow metrics with operating cash flow increasing to $2.33 billion in 2024 from $1.03 billion in 2023, indicating robust cash generation capabilities. The free cash flow also improved significantly to $1.18 billion in 2024 from $135 million in 2023, a growth rate of 774.07%, showcasing effective capital expenditure management. The operating cash flow to net income ratio of 4.67 in 2024 underlines strong cash earnings compared to accounting profits. The company demonstrates excellent liquidity and cash flow management.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 17.30B | 15.38B | 14.49B | 15.59B | 14.82B | Gross Profit |
| 2.06B | 1.28B | 118.00M | 1.56B | 1.54B | EBIT |
| 794.00M | 292.00M | -1.24B | 322.00M | 1.03B | EBITDA |
| 1.76B | 1.13B | -545.00M | 1.26B | 1.66B | Net Income Common Stockholders |
| 499.00M | 77.00M | -1.57B | 134.00M | 765.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.94B | 3.32B | 2.35B | 2.51B | 3.15B | Total Assets |
| 24.64B | 22.51B | 20.09B | 19.71B | 18.16B | Total Debt |
| 0.00 | 3.39B | 2.43B | 1.44B | 1.35B | Net Debt |
| -3.79B | -3.29B | 75.00M | -958.00M | -1.69B | Total Liabilities |
| 21.10B | 19.47B | 17.03B | 14.95B | 13.46B | Stockholders Equity |
| 3.53B | 3.03B | 3.04B | 4.75B | 4.65B |
| Cash Flow | Free Cash Flow | |||
| 1.18B | 135.00M | -1.01B | 120.00M | 55.00M | Operating Cash Flow |
| 2.33B | 1.03B | -195.00M | 996.00M | 743.00M | Investing Cash Flow |
| -1.34B | -782.00M | -679.00M | -939.00M | -267.00M | Financing Cash Flow |
| -478.00M | 743.00M | 846.00M | -715.00M | -234.00M |
Vestas Wind Systems AS Technical Analysis
Negative
4.76
Price Trends
4.78
Negative
4.77
Negative
6.15
Negative
Market Momentum
0.05
Positive
43.32
Neutral
4.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VWDRY, the sentiment is Negative. The current price of 4.76 is below the 20-day moving average (MA) of 5.08, below the 50-day MA of 4.78, and below the 200-day MA of 6.15, indicating a bearish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 43.32 is Neutral, neither overbought nor oversold. The STOCH value of 4.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VWDRY.
Vestas Wind Systems AS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $38.40B | 20.76 | 8.44% | 3.07% | 4.23% | -27.02% | |
73 Outperform | $57.12B | 19.15 | 11.37% | 3.38% | 2.76% | 31.53% | |
72 Outperform | $144.92B | 20.89 | 14.24% | 3.00% | 26.91% | -6.43% | |
71 Outperform | $214.53B | 33.45 | 27.62% | 0.56% | -32.60% | -28.55% | |
68 Neutral | $14.66B | 26.92 | 15.25% | ― | 12.40% | 554.81% | |
62 Neutral | $8.05B | 13.61 | 3.91% | 3.11% | 3.81% | -13.91% | |
58 Neutral | $40.70B | 23.03 | 11.22% | 2.94% | 6.13% | -31.01% |
* Industrials Sector Average
Performance Comparison
VWDRY
Vestas Wind Systems AS
4.76
-4.47
-48.43%
AEP
American Electric Power
106.96
25.54
31.37%
ED
Consolidated Edison
108.77
21.48
24.61%
GE
GE Aerospace
199.88
61.20
44.13%
NEE
NextEra Energy
70.45
8.81
14.29%
PEG
Public Service Enterprise
81.63
16.99
26.28%
Vestas Wind Systems AS Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 3.48% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook. Vestas reported record revenue and strong order intake, along with shareholder returns and sustainability progress. However, challenges in manufacturing ramp-up, service business costs, and safety concerns were noted. The offshore ramp-up is a significant cost burden impacting margins.Highlights
Record Revenue and Strong Q4 Performance
For the full year 2024, Vestas ended with a revenue of EUR17.3 billion, marking a 12% increase year-on-year, and achieved an EBIT margin of 4.3%. Q4 was the best quarter since 2017, with a 29% revenue increase year-on-year.
Service Business Expansion
The service order backlog grew to almost EUR37 billion from EUR34 billion at the end of 2023, with service reaching 155 gigawatt compared to 149 gigawatt a year ago.
Strong Order Intake and Backlog
Order intake of 17 gigawatt added EUR19 billion in value, with a high ASP. The order backlog in Power Solutions increased to a record high of EUR31.6 billion, up EUR5.6 billion compared to last year.
Shareholder Returns
Vestas proposed a dividend of DKK0.55 per share and will initiate a share buyback of EUR100 million with immediate effect.
Sustainability Achievements
Lifetime emissions avoided by produced and shipped capacity increased by 59 million tonnes compared to the previous year.
Lowlights
Manufacturing Ramp-Up Challenges
Manufacturing ramp-up challenges in the U.S. onshore and in offshore are driving additional costs as Vestas prepares to deliver on a record order backlog.
Service Business Challenges
The service business faced rising costs, and a recovery plan is now in place following a challenging year in 2024.
Fatalities and Safety Concerns
2024 was marked by five fatalities, including one Vestas employee. Safety performance across the value chain needs improvement.
Offshore Ramp-Up Costs
The offshore ramp-up is causing significant investment and costs, impacting margins negatively, with amortization and depreciation increasing by EUR200 million.
Company Guidance
During the call, Vestas provided comprehensive guidance for 2025, highlighting an expected revenue range of EUR18 billion to EUR20 billion and an EBIT margin before special items anticipated to be between 4% and 7%. The company emphasized its strong performance in 2024, achieving a revenue of EUR17.3 billion and an EBIT margin of 4.3%. Vestas noted an order intake of 17 gigawatts, adding EUR19 billion in value, marking a record year. The service business, despite challenges, ended with an EBIT of EUR448 million and a backlog of nearly EUR37 billion. Vestas also announced a proposed dividend of DKK0.55 per share and a share buyback of EUR100 million. The guidance reflects continued investment in manufacturing and a focus on improving service operations, alongside addressing the challenges posed by geopolitical and market volatility, particularly in the U.S. and Europe.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.